Eskom starts transition of 13,000 vehicle fleet to electric

From the newsletter

South African power utility Eskom has onboarded its first 20 electric vehicles. They consist of light delivery vehicles and light trucks deployed for internal use with plans to acquire another 100 EVs in the near future. Eskom has also built 10 EV charging stations to support its new electric fleet. It seeks to transition its entire fleet of more than 13,000 vehicles to EVs by 2040. 

• Large corporate customers such as Eskom can have a dramatic impact on EV sales in Africa, especially where adoption is still low.  

• More than 1,250 EVs were sold in South Africa in 2024, making it the continent’s biggest EV market. The increased demand for electricity from EVs will exert new pressure on Eskom, which has been struggling to keep the lights on. 

More details

• Eskom is one of South Africa’s largest fleet operators and aims to convert its entire fleet, starting with its distribution division, to electric vehicles. The company installed 10 charging stations at five sites in 2024 and plans to roll out 55 public charging stations over the next two years. 

• “To enable this shift, Eskom will expand charging infrastructure across its sites and roll out 55 public EV charging stations over the next two years, creating opportunities for broader adoption,” the power utility said.

• Eskom is the largest power company in South Africa, and is therefore a central player in the country’s shift towards EVs. South Africa is riddled with frequent power outages, which is working against EVs. However, the company says that it’s preparing its grid to ensure that it is ready to manage increased power demand, especially from EVs. 

• The company joins the club of African power utilities that are driving efforts to support the transition to EVs. in Kenya for example, the national power utility Kenya Power has taken a significant role in promoting EV adoption through public awareness campaigns and partnerships with stakeholders to set up charging stations. The company is investing in infrastructure and has even rolled out incentives like subsidized electricity rates for EV charging to encourage consumers to switch. 

• In Algeria, national electricity and gas company Sonelgaz is leading its national initiative to promote EVs by building charging infrastructure, manufacturing charging stations, and converting its own vehicle fleet to electric. These efforts are part of a broader government strategy to diversify the country’s energy mix and reduce carbon emissions. 

• Eskom, Kenya Power and Sonelgaz show that large companies, both government-owned and private, will play a major role in increasing the number of EVs in Africa. State corporations especially have significant capital which they deploy to buy EVs and build charging stations. 

Our take

• Corporate fleet transitions like Eskom’s will be a major driver of EV sales in Africa in the short to medium term, providing the scale needed to attract more private investment.

• Increased electricity demand from EVs has the potential to strain an already-strained grid in South Africa. To cope, utilities like Eskom will be forced to accelerate their grid modernization efforts.

• Going forward, we should see more collaborations between power utilities, private developers, and EV manufacturers to strategically place chargers along key transport corridors and in urban centers, bypassing the need for individual companies to shoulder the entire burden of infrastructure development.